Agenda item

To consider an update on the Transformation and Collaboration Programme with Waverley Borough Council. 

Please note, the Transformation and Collaboration Programme report (with appendices) approved by the Executive on 23 November 2023 is included at pages 28 - 70.

The Joint Executive Head of Organisational Development introduced the item.  He advised the Committee that the Business Transformation Manager at Waverley Borough Council was also the Programme Manager for the Transformation and Collaboration Programme between the Guildford and Waverley councils.  The Joint Executive Head of Organisational Development advised the meeting that the Executives of both Councils had agreed initial funding to develop and cost proposals for decision.  He indicated that the business cases prepared for projects within the Transformation and Collaboration Programme would provide financial information on the proposed changes.

The Joint Executive Head of Organisational Development advised the Committee that the £700k of future savings from collaborative working identified in the report was a high-level target put forward using initial proposals from joint executive heads of service.  He indicated that much of the potential savings of £700k was reliant on joint working arrangements between the Councils and that a shared staff structure with harmonised terms and conditions was a fundamental workstream for the programme.  The Joint Executive Head of Organisational Development advised that options to co-locate staff within a shared building was a major project of the Transformation and Collaboration Programme.  The Joint Executive Head of Organisational Development highlighted the decision of the Executive to invite the Overview and Scrutiny Committee to review the draft options appraisals, the recommendations and the costs and savings before any final decision by the Executive. 

With reference to presentation slides published within the papers for the meeting, the Programme Manager for the Transformation and Collaboration Programme presented an update to the Committee.  She confirmed that all services and operations were within the scope of the Programme and options would be considered through a business case process.  The meeting was informed that the co-location of staff was a priority project but was out of scope of the Programme and was being managed through the Place Directorate.  In addition, the Programme Manager advised that the harmonisation of policies and section 113 agreements to share officers were both outside the Programme’s scope. 

The Programme Managerexplained the two workstreams of the Programme; namely, Workstream One – a shared staff structure and terms and conditions, and Workstream Two – cashable savings projects.  The Committee was advised of the non-financial opportunities identified within the Transformation and Collaboration Programme, the limitations and restrictions within which the change had to occur, and the challenges of the change Programme change.  The Programme Manager informed the Committee of programme-wide challenges, including current IT incompatibility and limited resources to achieve the ambitious vison and objectives  of the collaboration.  The Committee was informed of the functions delegated to the Joint Governance Committee, which included responsibility for reviewing the Inter-Authority Agreement and collaboration risk register. 

In concluding her presentation, the Programme Manager highlighted the main early-stage risks associated with the Transformation and Collaboration Programme: a failure to prioritise; the financial risk that achieving the vison of the collaboration partnership will be too high; and the scarcity of project and programme management and other related skills and resources across the two Councils.

During the ensuing discussion a number of points were raised and responses offered:

·       In response to a query about the challenges facing the Programme, particularly in relation to IT, the Joint Executive Head of Organisational Development indicated that assessments of impact and cost would feature in each business case for change.  He told the Committee that officers would appraise all options and that engagement with staff, unions, and the Committee would occur before any formal Executive decisions were taken.

·       In reply to a question about unease among staff towards the Programme, the Joint Executive Head of Organisational Development advised that some staff find change unsettling and he noted the importance of ongoing communication and engagement with staff during the Programme.  The Committee was advised that staff reaction to the Programme had been a mixture of anticipation, excitement, and concern.

·       A Councillor questioned whether projected savings for the first four years of the Programme were £700k.  The Joint Executive Head of Organisational Development advised that the Programme was committed to deliver £700k of savings but that the details of the savings and the respective projects were not able to be shared at this stage.  The Programme Manager undertook to provide Committee members with details of financial spend and savings to date. 

·       In reply to further questions, the Joint Executive Head of Organisational Development indicated that redundancy costs caused by the Joint Management Team re-structure were one-off costs, in contrast to the savings that would recur annually. 

·       With reference to the recruitment of further staff to help deliver the Programme, the Joint Executive Head of Organisational Development indicated that the Executives of both Councils in November 2023 had not been able to allocate funds to support delivery of the Programme in the long term and had chosen to approve investment for a scaled-back and prioritised approach to initial delivery.  He confirmed that the HR Business Partner and the Business Transformation Officer would be shared posts between the two Councils.  The Committee was informed that officers had advised the recruitment of two posts to help delivery of the Programme for two years, rather than (for the same cost) four posts for a single year. 

·       In response to a question, the Joint Executive Head of Organisational Development indicated that the Programme did not include any form of formal local government re-organisation or merger between Guildford Borough Council and Waverley Borough Council. 

·       A Councillor questioned the potential financial benefits of the Programme, its apparent decline in ambition, and the adequacy of financial investment to help deliver the Programme.  He suggested that the achievements to date for collaborative working between the two Councils were minor and more could be gained from a move toward unitary status.  He indicated that the Partnership Vision Statement appeared to have reduced from full integration to a focus on harmonisation of processes.  He suggested that unitary status was a more logical outcome than collaboration.  In addition, the Councillor suggested the benefits of committing greater resources to help deliver the Transformation and Collaboration Programme.  In reply, the Joint Executive Head of Organisational Development noted that the five principles of the Partnership Vision Statement within the documents submitted to the Committee were little changed from the five headings of the original vision statement.  The Joint Executive Head of Organisational Development indicated that many of the Councillor’s comments were for the Executive and the Committee to consider. 

·       The Lead Councillor for Finance and Property indicated that harmonisation of processes underpinned the opportunities for savings.

·       A Councillor questioned whether a common sense, high-level estimates of the potential costs of co-location, shared staff structure, and likely IT changes, had been undertaken to establish the approximate amount of savings necessary to fund such changes.  In response, the Joint Executive Head of Organisational Development indicated the importance of Overview and Scrutiny at both Councils acting as a check and balance on the decision-making of their respective Executives, independent external advice would be obtained when necessary, ensure proposals are subject to feedback from councillors, staff, and residents.  He stated that business cases and options for decision would be based on accurate costings rather than approximations. 

The Chairman thanked officers for attending and answering questions and asked if there was a timeframe for bringing the draft options appraisals, the recommendations and the costs and savings to the Committee.  In reply, the Programme Manager suggested the value in bringing an update to each meeting of the Committee (as had been agreed with the Resources Overview and Scrutiny Committee at Waverley Borough Council the previous evening).